CAREEM COMPANY

Services Marketing Plan

For Careem Company
Head-Office in Dubai
DR. MADHAVI AYYAGARI
[Pick the date]

Afrah Salah Ahmed: 32665018, Tahir:

11/07/2017 | Bus 268 – Service Marketing
Contents
1.0 Executive Summary:..............................................................................................................................3
2.0 Introduction:..........................................................................................................................................3
2.1 Company Profile................................................................................................................................3
2.2 Vision Statement...............................................................................................................................3
2.3 Mission Statement.............................................................................................................................4
3.0 Market Analysis.....................................................................................................................................4
3.1 Target Market, Size and Growth........................................................................................................4
3.2 Market Demographics.......................................................................................................................4
3.3 Competitors:......................................................................................................................................5
4.0 Environmental analysis..........................................................................................................................5
4.1 PEST Analysis.....................................................................................................................................5
4.1.1 Political and Legal Factors...........................................................................................................5
Economic.............................................................................................................................................6
Social...................................................................................................................................................6
Technological.......................................................................................................................................6
Environmental.....................................................................................................................................6
5.0 SWOT Analysis:......................................................................................................................................7
6.0 Porter’s Five Force Model......................................................................................................................7
Threat of New entrants...........................................................................................................................7
Suppliers Bargaining Power.....................................................................................................................8
Buyer Bargaining Power..........................................................................................................................8
Threat of Substitutes...............................................................................................................................8
Rivalry with Competitors.........................................................................................................................8
7.0 Market Segmentation............................................................................................................................9
7.1 Psychological/Lifestyle Segmentation...............................................................................................9
8.0 Positioning.............................................................................................................................................9
8.1 Points of Difference...........................................................................................................................9
9.0 Marketing mix:....................................................................................................................................10
9.1 Product:...........................................................................................................................................10
 9.2 Price:................................................................................................................................................10
9.3 Price list:..........................................................................................................................................11
9.4 Place:...............................................................................................................................................11
9.5 Promotion and Advertising:.............................................................................................................11
9.6 Process:...........................................................................................................................................12
9.7 Physical evidence:............................................................................................................................12
10.0 Marketing Strategy:...........................................................................................................................12
10.1 Marketing objectives:....................................................................................................................13
10.1.2 Primary:..................................................................................................................................13
10.1.3 Secondary:..............................................................................................................................13
11.0 Referral Strategy:...............................................................................................................................13
12.0 Conclusion.........................................................................................................................................13
13.0 Reference..........................................................................................................................................14
1.0 Executive Summary:
Transportation has made our lives easier and also reduce traffic especially that Dubai is huge city
that have large number of tourism. So Careem Company aim to inspires and become well-known
institution from region. Careem Company was founded in 2012 and the headquarters in Dubai as
a web-based car booking service and they have established branches in more than 20 cities
across Middle East including Dubai, Riyadh, Cairo and Doha. The company modified its service
to meet customer needs. However, Careem Company designed convenient, reliable and
affordable services to customer in order to attract more visitors to use their service any time
everywhere. Since Careem Company started competing with Uber which also a car service
company. Thus, later Careem earned 100$ million meaning 367 million in 2016 from Saudi
Telecom Company [ CITATION Deu17 \l 1033 ]. The changes of market Dynamics Company realize
the need to be creative and continuously improving its performance due to build strong
relationship with clients and potential clients.

2.0 Introduction:
2.1 Company Profile
Careem is a transportation network company with vast operations in more than 50 cities .It
operates as a chauffeur driven transportation service ranging from sedans to sport utility vehicles
(SUV). Catering to the masses Careem has multiple choices in selecting the vehicle from
economy to premium, some with child seats and even some driven by women in all rides
providing premium service. Careem has rapidly grown into one of the leading online passenger
booking and transportation service in MENA region (Middle East and North Africa). They work
with over 150,000 drivers referred to as “Captains” providing transportation services striving for
excellence.

2.2 Vision Statement

To become the biggest mover of people and things in MENATP (Middle East, North Africa,
Turkey and Pakistan)
2.3 Mission Statement
“To simplify the lives of people in the region.” While building on values so it becomes an
inspiration for others, building the organizations foundation on generosity and care so we can be
Careem to our customers, Careem to our captains, and Careem at our core.

3.0 Market Analysis

3.1 Target Market, Size and Growth
The target market for Careem is large as it targets all the people who don’t own a car, unable to
drive or need a chauffeur to drive them. They cater to both the public and business entities
through passenger rides or item delivery services. Careem has more than 40,000 captains in
Dubai and more than two million registered users. Careem currently operates in 27 cities in the
Middle East whereas Uber is in 10. UAE is at a slow decline for transportation industries as
Dubai’s vehicle density lies at 540 cars per 1000 residents it is accurate to say that for every two
residents one owns a car. According to statistics provided by the Roads and Transport Authority
the number of privately owned vehicles has doubled in the last eight years from 740,000 at the
end of 2006 to 1.4 million at the end of 2014, an average annual increase of 8.2 percent, at this
rate it is predicted that by 2020 the number of registered vehicles can reach around 2.22 million
said by Nasser Abu Shehab, Director of Strategic Transport Planning at RTA.

3.2 Market Demographics

Ages 16-35 are the groups that use transportation services frequently in the United Arab
Emirates this group takes up approximately 45% of the total population, and a small fraction of
people between 35-54 age group. Due to their new innovation of hiring female drivers, they
attract a niche market within Dubai, as local women fit their demographics. Having an
application based booking provides ease to book a ride from any location wherever their clients’
may be; having many drivers is a benefit as the wait is not more than 5 minutes.
 3.3 Competitors:
In the Middle East, there are 2 major competitors to Careem which are Uber and Dubai Taxi.
These companies also provide the same transportation service to the mass the advantage that
Careem holds over Uber is a more efficient application and the drivers pleasantries. “Uber
conversation is only 4 percent more positive than negative, while Careem conversation is 25
percent more positive than negative.”

In AED Uber RTA Dubai Careem In AED Uber XL Careem Max

X Taxi Go In AED Uber 13 Careem
In AED Base Fare 20
Base Fare 5 Uber 12 Careem 6 Select Economy
Black Business
Cost per Km 1.37 2 1.82 BaseCost
Fareper Km 8 2.65 7 3.25
Base Fare 10 12
Minimum 12 12 12 Cost Minimum
per Km Fare
1.8 25 2.23 60
Cost per Km
Fare 1.9 2.5
Minimum 20 18 Minimum Fare 17 16
Fare

4.0 Environmental analysis

4.1 PEST Analysis
4.1.1 Political and Legal Factors
Careem operating in United Arab Emirates has to abide by the Sharia Law of the Country and
the government .Careem being a non-government owned business must have all the licensing to
exist. All employees are required to possess residence visa, valid Emirates ID and a working
labor card. Furthermore health insurance and the costs for visa for every staff member working.

Legal aspect will consider the employee law of the United Arab Emirates which include the
number of working hours, minimum wage rate and their age. Other than the following there are
consumer rights laws as well so if any necessity arises the customer knows how to proceed.
Economic

Social
Careem requires its workers to know multiple languages so as to communicate with the
passenger accordingly they must have a grasp on Arabic and English being the priority. Easily
available throughout the region, through their mobile application that requires only a few button
presses. As the more Careem is easily accessible the more people will prefer it over its
competitors.

Technological
The use of internet has spread the news of Careem. As passengers can write reviews and share
their experience with others. While using the application many factors come into account such as
pick-up location, drop-off location, cost estimate and method of payment. Registered Careem
users can pay with in app accounts aswell. This app is one of the core functions for Careem as it
acts a network bridge between the captains and passengers proving to be a critical of their
company.

Environmental
The effect of the transportation on the environment is changing, as many people believe it causes
traffic congestion, fuel usage and pollution. In Dubai however this is not the case as the roads are
wider aiding in smooth traffic control.

5.0 SWOT Analysis:

Strengths Weaknesses
Unlimited fleet of vehicles Undifferentiated of services.
High standard of service
Low operation costs
Affordable Pricing
Ability to track and choose high rated drivers
Customer focused vehicles.
 Opportunities Threats
Target new market segment Legal regulations
Electric cars , Helicopter transportation Government policies
Growing number of captains Price competition
Self-Driving cars
New service implemented by competitors

6.0 Porter’s Five Force Model

Michael Porter’s five force model has been used as the framework for industrial analysis since its
very introduction in 1979[ CITATION Por80 \l 1033 ]. His five force model measures the
competition in the market between brands [ CITATION Por08 \l 1033 ].

Threat of New entrants

The barriers to entry in the transportation industry particularly taxis is very high in the UAE with
the government policies being strict. Careem lacks protection from car pooling firms or those
that offer car pooling rides such as Uber share that charge less for the same travel distance.

Suppliers Bargaining Power

Careem business model is highly dependent on its captains owning their cars to use for work.
This puts Careem to use outsourcing strategies to hire its labor. Furthermore People who possess
cars and wish to work for taxi companies have the option to work for rivals including Uber thus
have power in their dealings with Careem. Therefore, Suppliers bargaining power is moderate in
the case of Careem.

Buyer Bargaining Power

Most customers don’t use Careem services on a regular basis as they have the option to choose
from other taxi agencies. There is no switching cost involved because customers use the online
application that is free. Seeing there is competition in the market, it shows that the customers are
price sensitive and any changes can usher them towards Careem rivals. Therefore, Buyers
bargaining power in UAE is strong.

Threat of Substitutes
Substitutes are a common force any business environment, as them existing alongside keeps
Careem from fluctuating their service rates. Being in a price sensitive environment even a slight
increase to the fares will result in their customers shifting towards Uber or RTA taxis.
Furthermore, the availability of public transport such as RTA busses and trains are an existing
threat to Careem’s operations. The threat of substitutes for Careem in UAE is high as well.

Rivalry with Competitors

Uber is the top competitor of Careem in UAE, as both these firms compete for customers as well
as drivers (captains). Careem has existed in the UAE before Uber entered the market and has
made significant investments to grow in the Middle East. However, Uber has been making
innovations to the way customers travel introducing helicopter taxis and will be investing
towards electric cars proving to be a prone contender in the UAE market for Careem. Adding all
of the following, the rivalry for Careem is high in the Middle East.

7.0 Market Segmentation

Any people that do not own a car or is unable to drive are the target market for Careem. Today’s
tech-savvy world relies on the internet and so does Careem as it targets people with smart phones
as potential customers. The customer can choose from a variety of vehicles from depending on
their journey requirements.

7.1 Psychological/Lifestyle Segmentation

Safety

Driver/Passenger confidentiality.

Security of payment (Cash or Credit card)

User-Friendly application

Round the clock availability of drivers.

Frequent travelers / “On the Go”

Time Efficient

Lives or works in a high traffic area.

8.0 Positioning
8.1 Points of Difference
All of the chauffeur taxi services focus on pick-up and drop off from point A to point B as per
the passenger’s choice. Careem differs from its competitors in a majority of ways such as
booking process and driver profiles. The difference in the booking process is with Careem the
passenger can add pick-up notes for the driver so they can notify the driver of any details such as
extra luggage. After confirmation of the destination the Careem driver profile is displayed to the
passenger and the trip commences. Whereas in Uber, the pick-up location is pinpointed on a map
but this feature is buggy furthermore Uber doesn’t always ask for your destination after the
driver has picked up the passenger then he/she has to tell the destination similar to a taxi. Driver
profile differences, the Uber application enables the passengers to see the driver's picture, profile
and his rating from previous passengers where as in Careem the passenger only receives the
name of the driver and the car model but they do offer an option to contact the driver directly.
9.0 Marketing mix:

9.1 Product:
Careem is well known as application based on car service. Careem offers people to order private
car driver through booking online using websites, mobile application or calling Careem head
office center. Careem has made the transportation services way easier more accessible for
customers which lead to customer being satisfied. Also Careem car services are more safe,
affordable, convenient and reliable.

9.2 Price:
In term of its price setting the Careem company car service will charge customers in two
different ways so payment can either be based on per minute basis on short distances or per mile
in case client chosen long trips. Careem provides various type of payment such as payment could
be paid through cash, using Careem credit or credit card, for instance, visa card, master card and
Emirates NBD, etc[ CITATION Car171 \l 1033 ]. However, Careem seeking to create new innovative
ways of payment in the future like transfer money or credit through mobile phone or skill
depending on market dynamics all this new enhancement will lead to customer feel more
comfortable to continuously use this type of service. In addition, Careem offer a special discount
for client who regularly uses car services transportation they get a discount of 25%, whereas new
visitors Careem provide 20% off discount for the first three rides booked from Careem
application Chaufeaur-driven car [ CITATION Car17 \l 1033 ].

On the other hand, some customers rely on commercial charge accounts this sort of approach is
made on a monthly basis. For example, the price is set according to a distance of the journey.
Thus, Careem will rate number of miles that drivers is capable to covering from start point to
final destinations and set a convenient price which satisfies both clients and driver.

9.3 Price list:

 New Citi credit card : AED 400
 New customer: AED 70
 Permanent users: AED 20 [ CITATION Env17 \l 1033 ].
9.4 Place:
The main head office of Careem Company
will be located in Dubai Media City. The
company policy is to make all vehicles
available whenever the customer request for
ride trip. Moreover, the company monitors
the movement of the vehicles through the
use of satellite system; therefore drivers can
take a risk and go out of the area sites with
no stress to the firm.

Customers are more accessible to locate the

truck using the Careem application or based
website. To point out, Careem ensures to distribute vehicles evenly around Dubai cities to deliver
highest quality service and to reach clients destination on time. In fact, once customer has an
account application of Careem, thence, the customer can check the location of the car whether
it’s near to them. This source of service assist customers to choose the driver by relying on his
profile, and his previous rates and clients monitor the movement of the driver.

9.5 Promotion and Advertising:

The Careem Company they may raise their brand visibility through the set of variety of
promotional activities. For instance, Careem creates these promotions in the form of “Careem
Code” that customers are allowed to set up their Careem code such as new users “referred users”
or drivers “referred Captains”. The Careem policy toward “Careem code” cannot be sold or trade
customer owns Careem code. However, the promotion might be distributed in source of receive
credits “Careem Credits” or get trip discount “ Trip discount” That clients can use it during
payment process[ CITATION Car17 \l 1033 ]. Occasionally, a Companies car driver service runs
advertisements to approach both international and domestic customers. The Careem Company
can have direct communications with potential customers through social media also with the help
of marketing techniques the process can be accomplished successfully. Careem can also offer the
special discount on customers that promote the company product on social media such as
Facebook, twitter or Google.
9.6 Process:
The term process relates to the Delivery of service, for example, keep the customer on the
waiting list, if the whole week is completely booked, Careem needs to think from consumer
perspective side how long will they need to wait before service is delivered. Therefore, to
prevent negative thoughts that may influence company repetition the duration for keeping the
customer on hold need to be shorten. However, it depends on number of staff hired by Careem
Company if it’s enough to cater to the client’s request.

9.7 Physical evidence:

The company should also ensure to create the best service available to their customers and
potential consumers in order to have a repeat purchase or positive experience at Careem. In this
case, Careem needs to make sure staff are well trained and willing to provide essential guidance
to the customer to let them feel they are being treated differently than any other car driver, not
just that, but also a need for great ambiance across locations and excellent customer service. As
results, this will lead to Careem deliver the best services to customer thus consumers can
distinguish one firm from other competitors.

10.0 Marketing Strategy:

Indeed, Careem marketing strategy focuses on making their customer aware of the type of
service business serve and the several of services available. Not only Careem aim to serve a
particular service at its valuable quality, but also seek to reach potential customers and build
strong customer loyalty. Consequently, to accomplish this Careem can use different methods
such as an advertisement to generate an effective way of communication with their customers.
Meanwhile, these ads could be placed through various channels like Al jazzier or CNN hence to
target international visitor and to attract new customer Careem can promote through newspaper
and magazines.

10.1 Marketing objectives:

10.1.2 Primary:
 Enhance the efficiency of the business by developing new technologies
 Increase brand consciousness and become popular brand in UAE
 Achieve high revenue by increasing market share
  Establish long-term relationship with customers [ CITATION BAA15 \l 1033 ]

10.1.3 Secondary:
 Expand the brand across all UAE in order to make it easier for customer to have faster
access to services without travelling to main office in Dubai
 Increase sales by 35% by 2021

11.0 Referral Strategy:

Word-of-mouth plays a vital role in social media, and it’s considered to be a significant factor
when it comes to serve in services in UAE community word-of-mouth it refers to the
communication process by which one person informally influences the actions or attitudes of
another. Thus when customers inform online friends of their experience with service provider
they will be given discount they other customer uses the service, for instance, Careem offer 20%
off for the first two ride.

12.0 Conclusion
UAE being a tourism hotspot and people who are highly time efficient the economy is well
accustomed to using chauffeur taxis, in this light Careem has flourished in the middle east. By
providing premium transportation they have developed excellent brand equity and passenger
loyalty. Along its path Careem identified many market gaps such as baby-friendly (child seat)
and women driver specific.
13.0 Reference
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(accessed 07 10, 2017).

—. What are my parents options? . 2017. https://help.careem.com/hc/en-us/articles/223374207-What-

are-my-payment-options- (accessed 06 10, 2017).
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(accessed 07 11, 2017).

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Porter, Michael E. "Five Force Strategy." Edited by Free Press. Competitive Strategy (New York), 1980.

Porter, Michael E. "The Five Competitive Forces that Shape Strategy." Harvard Business Review, 2008:
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Scott, Andrew. Careem app now lets you book a cab in Dubai. 02 27, 2017.
https://www.thenational.ae/business/careem-app-now-lets-you-book-a-cab-in-dubai-1.41220 (accessed
07 11, 2017).